Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16A07GROUP1 en-us 2016-04-06 00:20:24 UTC 2023-04-03 11:10:48 UTC hello@padlet.com Chat Box lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257352 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257352 Conclusion lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257353 To summarise, the fall in prices of coffee beans in Brazil is mainly due to the sharp increase in the supply of it. The increase in supply is due to several reasons: Farmers wanting to earn profits from selling more harvest, Factor of production like capital is improving which increases crop yield and more.

Changes in demand for coffee are evident too, but in this case, the change in factors affecting the supply of coffee are greater than that of demand, hence, the change in demand is not so significant as to cause a change in the price of coffee.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257353 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257354 Finally, the market is back in equilibrium at the intersection of the new supply curve and demand curve at E2. The new equilibrium price is lower at P2 and quantity is higher at Q2. ]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257354 Body: Using the market adjustment process, explain how the shift(s) changes the equilibrium price and quantity (Explanation of diagram): lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257355 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

Why?
-"Vietnam has gone from growing almost nothing a decade ago to producing 25m bags of robusta beans a year today. The result is an oversupply of coffee.
-"Many Brazilian and Colombian farmers invested to boost production of arabica in response to the high prices of 2011, which has added to the oversupply and further depressed prices. And good weather in Brazil means that this year's crop has turned out to be unexpectedly large."

MAP
-original price at P1, Qs > Qd, surplus develops
-downwards pressure on price as sellers cut prices in a bid to clear the stock
-as P1 falls to P2, Qd increases while Qs decreases
-surplus is gradually eliminated
-once P2 is achieved, market back to E2 again. 
-fall in equlibrium price (P1 to P2)
-fall in demand and increase in supply reinforces each other to cause a sharp fall in prices.
-the greater the fall in demand and increases in supply, the more significant the fall in price. 

]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257355 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257356 The supply of coffee beans is affected to a greater extent as factors affecting quantity supply like a change in demand of related goods and the weather cannot be controlled. Hence, the supply of coffee beans is more greatly affected than the demand.

Whereas for demand, although the taste and preferences of consumers are always changing, this change does not include everybody because only some people in certain countries are affected by the favourable change in tastes and preferences regarding coffee and hence it does not affect the change as much. 

Therefore, the supply curve will shift to the right more than the demand curve.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257356 Body: Identify and explain whether the factor/event shifts the demand or supply curve. (2 Demand + 1 Supply or 2 Supply + 1 Demand) lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257357
1 Supply Factor:
As stated in Article 1, "Low arabica prices are accompanied by rising costs. Wages in Brazil and Colombia are rising fast and production costs are above prices." This shows that when one of the prices of one of the inputs needed to produce coffee beans increases; in this case, the wages of the workers manually growing the coffee beans, producing coffee beans becomes less profitable as the cost of production of coffee beans has risen and hence there may be a fall in supply of coffee beans, ceteris paribus. This causes a leftward shift of the supply curve. 

1 Supply Factor: 
As stated in Article 1,"Much of the finest coffee is grown in Central America in places such as Guatemala, Nicaragua and El Salvador. That region has been hit by leaf rust, a fungal disease, which could destroy 30% of the crop this year. Thus, this shows that the fall in supply due to changes in weather may cause the supply of crops to fall, ceteris paribus. This causes a leftward shift of the supply curve. 

1 Demand Factor:
As stated in Article 2, "In the developing countries such as China, Indonesia and Brazil, meanwhile, where the emerging middle classes are discovering the joys of coffee and the market is growing by around 5% a year, robusta is the bean of choice." The tastes and preferences of consumers change in terms of their discovery of joy towards coffee and hence when people favour them, they will demand more of it and hence demand will increase, shifting the demand curve rightwards.

]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257357 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257358 Initially, the coffee bean is in equilibrium at the intersection of demand (D1) and supply (S1) at equilibrium point E1.

]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257358 Introduction lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257359 Explain market mechanism: 
Market mechanism refers to the use of money exchanged by buyers and sellers with an open and understood system of value and time trade-offs to produce the best distribution of goods and services. 

Define demand: 
Demand is defined as the amount of a good that consumers are willing and able to purchase in a given period of time at various prices. 


Define supply: 
Supply is defined as the amount of a good that producers are able and willing to offer for sale in a given period of time at various prices. 

]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257359 Welcome:) lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257360 Dear Students,

Welcome to Home-Based Learning 2016!

By now, you should have the list of the team members in your group. Each team will analyse 2 articles below to identify 3 evidence/information (2 Demand + 1 Supply or 2 Supply + 1 Demand factors)  to answer the following essay question:

a) With reference to the 2 news articles, explain the fall in prices of coffee beans in Brazil.

To discuss the answers with your group members, double click anywhere on the wall and a virtual "sticky note" will appear at the top. From, enter your name, then you can use the "sticky note" to "chat" with each other. 

For example, Miss Lee: I don't think that is a non-price factor that affects demand. Please remember to write your name before the statement :) 

Lastly, please identify these non-price determinants of demand & supply by quoting the relevant phrases from the article. 

For example, as stated in article 1, "the recession in Europe has hit demand". After quoting the evidence for the article please proceed to explain how this non-price factor affects demand or supply with economic rigour. 

I have provided some scaffolding statements to guide you in your essay development. Address each statement by writing the essay segment in the respective sticky note. Press the pencil button to write the respective essay segment.

]]> 2016-04-04 06:06:48 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257360 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257361 Objective - Students will be able to identify and explain how the demand and supply factors affect the market for coffee beans.]]> 2016-04-04 06:04:45 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257361 Group name: lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257362 Please write out the names of the members in the group.
1. Amanda
2. Alina
3. Qistina
4. Sabila]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257362 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257363 Change in Supply #1: Article 2, "The reason is that production of coffee, and of cheaper robusta beans in particular, is booming. Vietnam has gone from growing almost nothing a decade ago to producing 25m bags of robusta beans a year today. The result is an oversupply of coffee." Global supply of coffee beans increases as there are now more producers in the market.

Change in Supply #2: Article 1, "In response to the high prices of 2011 Brazilian farmers invested heavily in new acreage and improved yields with better husbandry and more fertiliser." Due to improvements in capital, a factor of production, the supply of coffee beans increases.

Change in Demand: Article 2, "In the developing countries such as China, Indonesia and Brazil, meanwhile, where the emerging middle classes are discovering the joys of coffee and the market is growing by around 5% a year, robusta is the bean of choice." The increase in income in consumers are changing their tastes and preferences, where their higher income power gives them a higher purchasing power and more people now can choose to drink coffee.]]> 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257363 News Article 2 lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257364 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257364 News Article 1 lee_xueting https://padlet.com/lee_xueting/16A07GROUP1/wish/104257365 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16A07GROUP1/wish/104257365